Magnera Corp (MAGN) 2025 Q2 法說會逐字稿

Good day and thank you for standing by. Welcome to the Magnera Q2 2025 earnings conference call. (Operator Instructions) Please be advised that today’s conference is being recorded.

您好，感謝您的支持。歡迎參加 Magnera 2025 年第二季財報電話會議。（操作員指示）請注意，今天的會議正在錄音。

I would now like to hand the conference over to your first speaker today, Mr. Robert Weilminster. Please go ahead.

現在我想將會議交給今天的第一位發言者羅伯特·韋爾明斯特先生。請繼續。

Thank you, operator, and thank you, everyone, for joining Magnera’s second fiscal quarter 2025 earnings call. Joining me, I have Magnera’s Chief Executive Officer, Curt Begle and Chief Financial Officer, Jim Till.

謝謝接線員，也謝謝大家參加 Magnera 2025 財年第二季財報電話會議。與我一起的還有 Magnera 的執行長 Curt Begle 和財務長 Jim Till。

Following our prepared remarks, we will have a question-and-answer session. To allow everyone the opportunity to participate, we ask that you limit yourself to one question with a brief follow-up, then fall back into the queue for any additional questions. A few things to note before handing over the call.

在我們準備好的發言之後，我們將進行問答環節。為了讓每個人都有機會參與，我們要求您將問題限制在一個範圍內，並進行簡短的跟進，然後再回到隊列中詢問其他問題。交接電話前需要注意一些事項。

On our website at magnera.com, you can find today’s press release and earnings call presentation under Investor Relations. You can also go directly to ir.magnera.com to review the investor presentations from our recent conference attendance.

在我們的網站 magnera.com 上，您可以在「投資者關係」下找到今天的新聞稿和收益電話會議簡報。您也可以直接造訪 ir.magnera.com 查看我們最近參加會議的投資者簡報。

During the month of February, we attended Barclays Industrial Select Conference, JPMorgan’s Leverage Finance Conference, and Bank of America’s Global Agriculture and Materials Conference. As referenced on slide 2 during the call, we will be discussing certain non-GAAP financial measures. These measures are reconciled to the most directly comparable GAAP financial measures in our earnings press release and in the appendix of the presentation available on our website.

二月份，我們參加了巴克萊工業精選會議、摩根大通槓桿融資會議以及美國銀行全球農業和材料會議。正如電話會議幻燈片 2 中所提到的，我們將討論某些非 GAAP 財務指標。這些指標與我們收益新聞稿和我們網站上簡報附錄中最直接可比較的 GAAP 財務指標相協調。

Additionally, a reminder that we will make certain forward looking statements. These statements are made based upon management’s expectations and beliefs concerning future events impacting the company and therefore are subject to risks and uncertainties. Actual results or outcomes may differ materially from those expressed or implied in our forward-looking statements. Some factors that could cause the results or outcomes to differ are in the company’s latest SEC filings and our news releases. These statements speak only as of today, and we undertake no obligation to update them.

此外，我們也會做出某些前瞻性的陳述。這些聲明是基於管理層對影響公司的未來事件的期望和信念而做出的，因此具有風險和不確定性。實際結果或成果可能與我們的前瞻性陳述中所表達或暗示的結果有重大差異。一些可能導致結果或成果不同的因素包含在公司最新的美國證券交易委員會 (SEC) 文件和我們的新聞稿中。這些聲明僅代表今天的觀點，我們不承擔更新這些聲明的義務。

I will now turn the call over to Magneira’s CEO, Curt Bingley.

現在我將把電話轉給 Magneira 的執行長 Curt Bingley。

Thank you, Robert. Good morning, everyone, and thank you for joining us. We’re excited to share our second quarter results and provide an update on the momentum we’re building across the organization as a new company.

謝謝你，羅伯特。大家早安，感謝大家的收看。我們很高興與大家分享我們第二季的業績，並介紹我們作為一家新公司在整個組織內所取得的進展。

I’ll begin with an overview of our business, highlight new innovative product launches, summarize our key takeaways for the quarter, provide an update on synergy realization, and discuss the potential impact of tariffs and ongoing market uncertainty before I turn the call over to Jim for our financial update.

我將首先概述我們的業務，重點介紹新的創新產品發布，總結本季度的主要收穫，提供協同效應實現的最新情況，並討論關稅和持續的市場不確定性的潛在影響，然後將電話轉給吉姆，讓他匯報我們的財務最新情況。

Slides 5 and 6 provide a reminder of Magnera’s distinguished position as a global leader in material solutions with a growth engine focused on product differentiation for premium applications that delight end users. Our strategic market positioning is complemented by the widest array of technology platforms in our personal care and consumer solutions categories relative to our peer set. We leverage our research and development centers of excellence by collaborating with our customers and suppliers to address the ever changing demands of the consumer.

投影片 5 和 6 提醒我們 Magnera 作為材料解決方案全球領導者的傑出地位，其成長引擎專注於讓最終用戶滿意的高端應用的產品差異化。與同行相比，我們在個人護理和消費者解決方案類別中擁有最廣泛的技術平台，這補充了我們的策略市場定位。我們利用我們卓越的研發中心與客戶和供應商合作來滿足消費者不斷變化的需求。

Our manufacturing footprint effectively serves our global CPG and regional customers with business continuity options. As the circular economy remains a key focus, our local supply chain is more effective for our customers and more beneficial for the environment. Our team continues to identify actions that will further optimize our footprint to improve efficiency and increase value to our customers given Magnera’s scale.

我們的製造足跡有效地為我們的全球 CPG 和區域客戶提供業務連續性選擇。由於循環經濟仍然是重點，我們的本地供應鏈對客戶更有效，對環境也更有利。考慮到 Magnera 的規模，我們的團隊將繼續尋找進一步優化我們足跡的行動，以提高效率並為我們的客戶增加價值。

Slides 7 through 9 are recent examples of product launches that further demonstrate our ability to pivot our portfolio to high end applications in the face of dynamic market conditions. We are proud to have been acknowledged and awarded the most innovative building material at the 2025 International Builders’ Show.

投影片 7 至 9 是最近推出的產品範例，進一步證明了我們在動態市場條件下將產品組合轉向高階應用的能力。我們很榮幸在 2025 年國際建築商博覽會上獲得認可並被授予最具創新性的建築材料。

Our new TYPAR branded clear acrylic flashing solution was recognized for builder efficiency by streamlining window installation and inspection. It is the seventh new product line extension in the past three years for our trusted TYPAR product line and is why we maintain a top position in the North American infrastructure market. In addition to gaining new customers, we view the market’s short housing position in The United States and Canada to be a future tailwind for organic growth.

我們的全新 TYPAR 品牌透明丙烯酸防水解決方案因簡化窗戶安裝和檢查而提高了建築商的效率，因此獲得了認可。這是我們值得信賴的 TYPAR 產品線在過去三年中第七次擴展新的產品線，這也是我們在北美基礎設施市場中保持領先地位的原因。除了獲得新客戶之外，我們認為美國和加拿大市場的住房短缺將成為未來有機成長的順風。

The next product spotlight addresses a growing consumer preference of soft touch and feel for premium incontinence applications. Our new ChemiSoft and UltraSoft products were developed through material science and our deep understanding of required performance characteristics. The team successfully combined innovative patterns with proprietary material chemistry to deliver unparalleled drapability and superior barrier properties. These premium products provide twice the softness than the standard offering. By manufacturing these products with a variety of raw materials and basis weights, we are able to reduce the production carbon footprint.

下一個產品焦點是滿足消費者對優質失禁應用的柔軟觸感和手感日益增長的偏好。我們的新款 ChemiSoft 和 UltraSoft 產品是透過材料科學和我們對所需性能特徵的深刻理解而開發出來的。該團隊成功地將創新模式與專有材料化學相結合，實現了無與倫比的懸垂性和卓越的阻隔性能。這些優質產品的柔軟度是標準產品的兩倍。透過使用各種原材料和基礎重量來製造這些產品，我們能夠減少生產碳足跡。

Now, shifting to our second quarter performance and an update on synergies and tariffs. Energy inflation in Europe proved to be a significant headwind with natural gas and electricity costs higher than the prior March. In addition, we experienced cost increases in primary raw materials such as resin and cellulose fibers. We intend to recover these increases in the second half through our price pass through mechanisms and productivity. As the quarter progressed, we experienced inconsistent order patterns from our customers due to a growing level of market uncertainty.

現在，我們來談談第二季的業績以及協同效應和關稅的最新情況。歐洲的能源通膨被證明是一個重大阻力，天然氣和電力成本高於去年三月。此外，樹脂和纖維素纖維等主要原料的成本也出現上漲。我們打算透過價格傳導機制和生產力在下半年恢復這些成長。隨著本季的進展，由於市場不確定性的增加，我們遇到了來自客戶的不一致的訂單模式。

Many of our largest customers adopted a wait and see approach as reflected in the market consumption data for the quarter. Given these recent order trends, which are inconsistent with our historic order patterns, we are working closely with our customers. Should our customers decide to reduce their own inventories due to a drop in consumption, this could impact our sales. While we don’t anticipate the current market dynamics to become permanent, we are prepared to execute the required actions, which could include idling more capacity or initiating footprint rationalization in response to what we deem our new longer term market realities.

從本季的市場消費數據可以看出，我們的許多最大客戶都採取了觀望態度。鑑於最近的訂單趨勢與我們的歷史訂單模式不一致，我們正在與客戶密切合作。如果我們的客戶因為消費下降而決定減少自己的庫存，這可能會影響我們的銷售。雖然我們預計當前的市場動態不會成為永久性的，但我們已準備好採取必要的行動，其中可能包括閒置更多產能或啟動足跡合理化，以應對我們認為的新的長期市場現實。

Moving now to a synergy update on slide 12. We remain committed to our $55 million net synergies over three years and have progressed from the assessment stage to the implementation across our three major pillars. We are effectively streamlining our organization and optimizing our SG&A structure by addressing redundancies in functional areas to enable a more responsive and agile workforce. Our procurement and operational teams have made great progress executing alternate raw material qualifications, and we are ramping up efforts to optimize our production pipeline while we harmonize warehouse space and rationalize capacity for productivity gains. All actions are grounded by our unwavering commitment to safety of our employees and supply surety for our customers. Our team is working diligently to build flexibility in our supply base with procurement being a competitive strength for the company.

現在轉到投影片 12 上的協同更新。我們將繼續致力於三年內實現 5500 萬美元的淨協同效應，並已從評估階段進展到在三大支柱上實施。我們正在有效精簡組織架構，優化銷售、一般及行政費用 (SG&A) 結構，解決職能領域的冗餘問題，以打造更具回應能力和敏捷性的員工團隊。我們的採購和營運團隊在執行替代原料資格方面取得了巨大進展，我們正在加強優化生產線，同時協調倉庫空間並合理化產能以提高生產力。一切行動都基於我們對員工安全和為客戶提供保障的堅定承諾。我們的團隊正在努力提高供應基礎的彈性，使採購成為公司的競爭優勢。

We expect procurement and operations to deliver value this year and further accelerate cost reductions in 2026. Regarding tariffs, we broadly view the impact as being in line with what our CPG customers are communicating related to consumption of the essential everyday use products we provide. As it relates to our cost of goods sold, we view the potential impacts to be limited as the majority of our raw materials are sourced and shipped within the geography of our production sites. We benefit from being a local supplier to our customers with a global footprint that provides business continuity plans in uncertain times. We are tracking tariff communications and mindful of supply chain rebalancing efforts and the potential for short term supply repositioning as markets react to the implemented tariff measures.

我們預計採購和營運將在今年創造價值，並在 2026 年進一步加快成本削減。關於關稅，我們大體上認為其影響與我們的 CPG 客戶就我們提供的日常必需產品消費所傳達的訊息一致。由於它與我們的銷售成本有關，我們認為潛在影響有限，因為我們的大部分原材料都是在我們的生產基地內採購和運輸的。作為一家擁有全球影響力的在地供應商，我們為客戶提供在不確定時期提供業務連續性計畫的優勢。我們正在追蹤關稅溝通情況，並關注供應鏈再平衡努力以及市場對實施的關稅措施做出反應時短期供應重新定位的可能性。

As the market landscape evolves, we will work toward offsetting cost increases through pricing actions. As I noted, we are prepared to take additional action to optimize our business to match consumer demand realities. For Magnera, we view this time of uncertainty as an opportunity to reinforce the core fundamentals that will deliver long term value creation for our shareholders. As we realize synergies and gain market share with our highly differentiated technology platforms, we will leverage our scale and innovative product offerings to deliver value and support customer growth.

隨著市場格局的變化，我們將努力透過定價行動來抵銷成本上漲。正如我所指出的，我們準備採取額外措施來優化我們的業務，以滿足消費者的現實需求。對 Magnera 而言，我們將這個不確定的時期視為一個機會，以加強核心基本面，為股東創造長期價值。隨著我們透過高度差異化的技術平台實現協同效應並獲得市場份額，我們將利用我們的規模和創新產品來創造價值並支持客戶成長。

Now, I will turn the call over to Jim, who will review Magnera’s financial results. Jim?

現在，我將電話轉給吉姆，他將審查 Magnera 的財務結果。吉姆？

Thank you, Kurt. As a reminder, when we compare our results to the prior year March, we’ve adjusted the prior year to present on a constant currency basis and include the Glatfelter merger. Reconciliations to our reported results can be found in the appendix.

謝謝你，庫爾特。提醒一下，當我們將我們的結果與去年 3 月的結果進行比較時，我們已經對去年的結果進行了調整，使其以固定匯率為基礎呈現，並包括了 Glatfelter 合併。與我們報告的結果的對帳可以在附錄中找到。

Turning now to our consolidated performance. March sales were $824 million as strength in our America Consumer Solutions Asia’s Personal Care categories were offset by weaker performance in South America and Europe. Adjusted EBITDA for the quarter was $89 million as contributions from synergies, acquisitions and cost reduction efforts were partially offset by energy inflation in Europe, unfavorable product mix and standalone costs.

現在來談談我們的綜合業績。3 月銷售額為 8.24 億美元，因為我們美洲消費解決方案亞洲個人護理類別的強勁表現被南美洲和歐洲的疲軟表現所抵消。本季調整後的 EBITDA 為 8,900 萬美元，因為協同效應、收購和成本削減措施的貢獻被歐洲的能源通膨、不利的產品組合和獨立成本部分抵消。

Looking at our operating segments on slide 14, sales from the Americas division delivered consistent year over year revenue of $473 million as organic volume growth in our infrastructure and wipes end markets was offset with competitive pressures from Asia imports in South America. As a result of these pressures, adjusted EBITDA was down $3 million due to unfavorable product mix despite overall flat volumes for the division.

從幻燈片 14 上的營運部門來看，美洲分部的銷售額年穩定成長 4.73 億美元，因為我們的基礎設施和擦拭巾終端市場的有機銷售成長被來自南美的亞洲進口競爭壓力所抵消。由於這些壓力，儘管該部門的整體銷售持平，但產品組合不佳導致調整後的 EBITDA 下降了 300 萬美元。

Moving to slide 15. In our Rest of World division, which includes our Europe and Asia locations, we delivered revenues of $351 million We experienced overall softer volumes for the division as weaker consumption levels negatively impacted our personal care category and our home food and beverage end markets in Europe. Adjusted EBITDA was down $5 million compared to the prior year quarter, primarily from $6 million of higher energy costs in Europe, as discussed earlier by Curt. As a reminder, a combination of pricing actions and energy pass through mechanisms should result in a recovery of these costs in the June.

移至投影片 15。在我們的世界其他地區部門（包括我們的歐洲和亞洲分部），我們的收入為 3.51 億美元。由於消費水平下降對我們的個人護理類別以及我們在歐洲的家庭食品和飲料終端市場產生了負面影響，該部門的整體銷售量有所下降。調整後的 EBITDA 與去年同期相比下降了 500 萬美元，主要原因是歐洲能源成本增加了 600 萬美元，正如 Curt 之前所討論的。提醒一下，定價行動和能源轉嫁機制的結合應該會導致這些成本在六月恢復。

During the quarter, the company generated $42 million of post-merger adjusted free cash flow as CapEx in the quarter was $23 million which was in line with our expectations as we prioritized maintenance level CapEx while near term consumption levels remain soft and market capacities remain long. We’ve ended the quarter with approximately $570 million of available liquidity, which represents 14% improvement from the December. And our net debt to pro form a adjusted EBITDA was 3.9 times. In the near term, we will remain focused on strengthening our balance sheet, preserving liquidity and improving operational agility as we navigate the evolving global landscape.

本季度，公司產生了 4,200 萬美元的合併後調整後自由現金流，因為本季的資本支出為 2,300 萬美元，這符合我們的預期，因為我們優先考慮維持水準的資本支出，而短期消費水準仍然疲軟，市場容量仍然很長。本季末，我們擁有約 5.7 億美元的可用流動資金，較 12 月成長 14%。我們的淨債務與調整後的 EBITDA 比率為 3.9 倍。短期內，我們將繼續致力於加強資產負債表、保持流動性和提高營運靈活性，以應對不斷變化的全球格局。

Now, turning to our guidance on slide 16. During the quarter, I’m proud of the teams for their acceleration of the synergy realization efforts and furthering our cost reduction programs, which will improve our competitiveness over the long term. These actions, along with lower raw material prices and improving energy markets in Europe, will bring benefits to the second half.

現在，轉到第 16 張投影片上的指示。在本季度，我為團隊加快實現協同效應的努力和進一步推進成本削減計劃感到自豪，這將提高我們的長期競爭力。這些舉措，加上歐洲原物料價格下降和能源市場改善，將為下半年帶來利多。

Offsetting these tailwinds are macro uncertainties and potential downstream impacts from the reshuffling of global supply chain. Despite these macro uncertainties and corresponding revision of our fiscal 2025 adjusted EBITDA guidance to $360 million to $380 million we are reaffirming our post-merger adjusted free cash flow guide of $75 million to $95 million driven by an intense focus on CapEx and working capital initiatives.

抵消這些順風的是宏觀不確定性和全球供應鏈重組可能帶來的下游影響。儘管存在這些宏觀不確定性，並且我們相應修改了 2025 財年的調整後 EBITDA 指引至 3.6 億美元至 3.8 億美元，但我們仍重申合併後調整後的自由現金流指引，即 7500 萬美元至 9500 萬美元，這主要得益於對資本支出和營運資本計劃的高度關注。

This concludes my financial review, and I’ll turn it back over to Curt.

我的財務審查到此結束，我將把它交還給 Curt。

As Jim highlighted in the 2025 guidance and outlook, we will be disciplined in our actions to deliver long term shareholder value by prioritizing repayment of debt and reducing our leverage to approximately three times. We’re proud to deliver our first full quarter as Magnera and have officially pivoted from post merger stabilization to optimization. These efforts will be meaningful as our synergy programs deliver on our planned savings.

正如吉姆在 2025 年指引和展望中所強調的那樣，我們將嚴格執行行動，透過優先償還債務並將槓桿率降低至約三倍來實現長期股東價值。我們很榮幸能夠以 Magnera 的身份完成第一個完整季度，並正式從合併後的穩定轉向優化。當我們的協同計劃實現計劃的節約時，這些努力將是有意義的。

On the safety front, I’m proud to announce that several of our sites have reached important safety milestones, such as our Carrafilly site in Wales, which recently celebrated ten years working injury free. This demonstrates what is possible and reinforces our focus on making safety personal as we pursue zero workplace injuries. In closing, this quarter has demonstrated the resilience of our business in a challenging environment. Magnera’s action-oriented culture is one that attacks challenges head on as we leverage our unique value proposition in the markets we serve.

在安全方面，我很自豪地宣布，我們的幾個工廠已經達到了重要的安全里程碑，例如我們位於威爾斯的卡拉菲利工廠，最近慶祝了十年無工傷事故。這證明了什麼是可能的，並加強了我們在追求零工傷的同時對個人安全的關注。最後，本季證明了我們的業務在充滿挑戰的環境中所具有的韌性。Magnera 的行動導向文化是一種迎接挑戰的文化，因為我們在所服務的市場中利用我們獨特的價值主張。

We appreciate your interest in Magnera. Jim and I are happy to address any questions you may have. Operator, please open the question queue.

感謝您對 Magnera 的關注。吉姆和我很樂意解答您的任何問題。接線員，請打開提問隊列。

Gabe Hajde, Wells Fargo.

富國銀行的 Gabe Hajde。

Kurt, Jim, good morning.

庫爾特、吉姆，早安。

Morning.

早晨。

Wanted to ask if you can put a finer point on some of the tariff impacts, maybe to the extent that products are moving into the US maybe as a percent of revenue. And Curt, I think in your prepared remarks, you talked about some raw material movements. I go to kind of cellulose fibers here out of the US.

想問您是否可以更詳細地說明一些關稅影響，也許是以產品進入美國的程度，也許是以收入的百分比來說明。柯特，我想在您準備好的發言中，您談到了一些原料的變動。我來這裡是為了研究美國以外的纖維素纖維。

I know that stuff gets exported, there was some pretty good price momentum, seems like things may be taking a breather and heading the other way, but maybe as a percent of COGS, what could be moving around on you, again resin seems like it’s for the most part behaving, So and then maybe a magnitude of impact that you’re thinking about for the second half.

我知道這些東西都會出口，價格勢頭也相當不錯，看起來事情可能正在喘息並朝著另一個方向發展，但也許作為銷貨成本的百分比，什麼可能會對你產生影響，再次，樹脂似乎在大多數情況下都表現良好，所以也許你正在考慮下半年的影響程度。

Gabe, thanks, and thanks for being with us today. A couple of things. Let me address the raw material question first. We did see inflation in the quarter, which is, as you know, we have a bit of a lag as it relates to the price changes, which would have been effective on April 1. And then there’s a flow through of that material that comes to the balance sheet.

加布，謝謝你，也謝謝你今天和我們在一起。有幾件事。我先來談談原料問題。我們確實看到了本季度的通貨膨脹，正如你所知，這與價格變化有關，有點滯後，價格變化將於 4 月 1 日生效。然後這些材料就會流入資產負債表。

So we would see that balancing out and starting to recover from what we negatively experienced in the quarter before. But over time, it’s relatively immaterial to our overall financial outlook. As it relates to other raws coming exported, imported into various countries, as we mentioned, we’re pretty well established from local supply of materials where we do have some of those impacts. The team has worked through price pass through mechanisms to our customers where they were impacted. And part of that is you’re working through the inventories that you have on hand.

因此，我們會看到這種情況逐漸平衡，並開始從上一季的負面經驗中恢復過來。但隨著時間的推移，它對我們的整體財務前景來說相對來說並不重要。正如我們所提到的，至於其他原材料的出口和進口到各個國家，我們在當地的材料供應方面已經相當成熟，我們確實受到了一些影響。該團隊已透過價格轉嫁機制向受到影響的客戶提供服務。其中一部分就是您正在處理手邊現有的庫存。

And then of course, when that starts to flow through. So we’ve been leaning in, in terms of what that looks like, which customers would be impacted the most for our business and then making sure that we have the right pass through mechanisms to them to recover those costs. From a demand standpoint, you have a bit of a situation where there’s puts and takes. The big thing for us that we’re keeping a very close eye on really is just inconsistent order patterns. And we saw a lot of that in the March and kind of bleeding into Q3, which gave us a bit of a pause in terms of the conservatism in the outlook because we’re seeing customers that truly are kind of in a wait and see.

然後當然，當它開始流動時。因此，我們一直在努力了解哪些客戶會對我們的業務產生最大影響，然後確保我們有正確的轉嫁機制來幫助他們收回這些成本。從需求角度來看，你面臨的狀況有點像是既有付出又有收穫。對我們來說，真正需要密切關注的問題是不一致的訂單模式。我們在三月看到了很多這樣的情況，並且這種現像一直持續到第三季度，這讓我們在前景的保守性方面稍作停頓，因為我們看到客戶確實在觀望。

They’re unsure on what working capital targets they want to hit, what the demand outlook would look like for them. You’ve heard some of the large customers of ours that have called down their demand guidance. And when that happens, historically, you’ll start to see them ramping down some of their inventories. And so we just want to be mindful of that, which is why we’ve given essentially a flat quarter over quarter volume outlook where we historically see a natural lift from first half to second half with Q3, Q4 being the strongest quarters followed by Q2 and then rounded out by our fiscal Q4. So the one thing that I would say that we’re also keeping a close eye on, and we started to see some of the impact, it’s throughout the course of 2024 and early into 2025 with some of the materials going into other regions out of Asia into South America, for instance, or further into Europe.

他們不確定他們想要達到什麼樣的營運資本目標，也不確定他們的需求前景是什麼樣的。您已經聽說我們的一些大客戶已經下調了需求指導。當這種情況發生時，從歷史上看，你會看到他們開始減少部分庫存。因此，我們只是想牢記這一點，這就是為什麼我們給出了季度環比銷量基本持平的預期，而從歷史上看，我們預計上半年到下半年銷量會自然上升，其中第三季度和第四季度是最強勁的季度，其次是第二季度，然後是我們的財政第四季度。所以我想說的一件事是我們一直在密切關注的，而且我們已經開始看到一些影響，那就是在 2024 年和 2025 年初，一些材料將進入亞洲以外的其他地區，例如南美洲，或者更遠的歐洲。

So we’re keeping a close eye on it. So as we’ve we have a large position in North America, where we see the potential benefits there. As we’ve received a number of calls and dialogue with customers as they’re trying to sort out their own supply chain initiatives, whatever benefits that we may receive here in North America, we’ve been very cautious in terms of what that offset might be in different parts of the world. So again, managing that on a day by day basis. I think the one thing that we feel very comfortable about is the fact that we are we do have stickiness with our customers in terms of providing value and service levels from a local standpoint, where a good part of the position and the portion of our portfolio that truly is the value add value service helps kind of protect long term the enterprise.

所以我們正密切關注此事。由於我們在北美佔有較大的份額，因此我們看到了那裡的潛在利益。由於我們接到了許多客戶的電話，並與他們進行了多次對話，他們正在嘗試理清自己的供應鏈計劃，因此無論我們在北美可能獲得什麼好處，我們都對世界不同地區可能出現的補償情況非常謹慎。所以，再次強調，要每天進行管理。我認為讓我們感到非常安心的一件事是，從本地角度來看，我們在提供價值和服務水平方面與客戶保持著緊密聯繫，我們的很大一部分業務和產品組合中真正能夠提供增值服務的部分有助於長期保護企業。

And so there’s always going to be a transactional part of the business. The team works very diligently, and we’re working very hard on truly understanding the total portfolio from a strategic long term objective, where we’re going to play, where we’re to lean in, where we have the right to win. A big part of that, Gabe, that we’ve been communicating and working on is finding ways to make sure that we have the lowest cost position. And a big part of that is getting the synergy realizations from procurement as we’ve worked really well with suppliers, new suppliers in some cases, and then there’s a qualification ramp up. And then of course, you have the inventory that you need to work through in different parts of the segment. So we have certain parts of the portfolio that we get through very quickly in terms of the inventory and then some of the other positions that we have in the portfolio that have a little bit longer kind of flow through of those materials, both from a customer inventory standpoint and our inventory standpoint. So again, for us, the fundamentals remain very strong for the business. We see this as being temporary uncertainty. I think everybody’s throwing those words out there. Customers are we’ve had a lot of dialogue with customers and they’re trying to understand where they can do some moves and what the ultimate consumption is going to be.

因此，業務中總是存在交易部分。團隊工作非常勤奮，我們正在努力從戰略長期目標的角度真正了解整個投資組合，了解我們將在哪裡發揮作用，我們將在哪裡傾斜，我們在哪裡有權取勝。加布，我們一直在溝通和努力的其中很大一部分是尋找方法確保我們擁有最低的成本地位。其中很大一部分是透過採購來實現協同效應，因為我們與供應商、在某些情況下是新供應商合作得很好，然後資質也得到了提升。當然，您還需要處理該細分市場不同部分中的庫存。因此，就庫存而言，我們的投資組合中的某些部分可以很快用完，而我們投資組合中的其他一些部分，無論是從客戶庫存的角度還是從我們的庫存的角度，這些材料的流通時間都要長一些。所以，對我們來說，業務基本面仍然非常強勁。我們認為這只是暫時的不確定性。我想每個人都會這麼說。我們與客戶進行了大量對話，他們試圖了解他們可以在哪些方面採取一些行動以及最終的消費情況。

But we rest easy at night knowing that we make products that people use every day, Whether they decide to do 3.5 loads of laundry versus five loads of laundry in a week for a period of time, we don’t see that being long standing. We’ve experienced things like that in the past. But for us, we’ll continue to monitor it. And then we’ll make the appropriate operational actions if we see this being a more permanent situation long term.

但我們晚上可以安心休息，因為我們知道我們生產的產品是人們每天都會用到的，無論人們在一段時間內決定每週洗 3.5 次衣服還是 5 次衣服，我們都不會認為這種情況會持續很長時間。我們過去也經歷過類似的事情。但對我們來說，我們會繼續監控。如果我們發現這種情況會長期持續下去，我們就會採取適當的行動。

Okay. And maybe ask the question a little bit differently on the volume side. I mean, flattish in The Americas, sounded like US or domestic was maybe up a little bit and South America down, rest of world down 3%.

好的。或許可以從音量稍微改變一下提問方式。我的意思是，美洲地區持平，聽起來好像美國或國內可能上漲了一點，而南美洲下降，世界其他地區下降了 3%。

That doesn’t seem like awful. So maybe what you’ve seen thus far through April, early May and pick the midpoint of three seventy sort of what the embedded volume assumption is in there or is the bigger swing factor pricing or price pressure that you might see from material coming out of Southeast Asia going into other parts of the world?

這看起來並不是很糟。那麼，也許您到目前為止看到的是，截至 4 月份、5 月初，並選擇 370 的中點，其中嵌入的成交量假設是什麼，或者是更大的波動因素定價或價格壓力，您可能會看到來自東南亞的材料進入世界其他地區？

Yes. And apologies if I didn’t answer the question earlier, the way you were looking for it. So you’re correct. North America was stronger. We did continue to see some of the supply demand challenges coming out of Asia and South America through the quarter. So that offset some of the growth that we did experience in the US. As you recall, we have a relatively small position in China today. It’s 5% of our revenue overall revenue. That business is actually very stable. For Europe, it has been more of are we seeing more competitive threats or is it really consumption?

是的。如果我沒有早點按照您想要的方式回答您的問題，我深感抱歉。所以你是對的。北美更加強大。本季我們確實繼續看到來自亞洲和南美洲的一些供需挑戰。因此，這抵消了我們在美國經歷的部分成長。大家應該還記得，我們目前在中國的市佔率相對較小。這占我們總收入的 5%。那個生意其實非常穩定。對歐洲來說，我們看到更多的是更多的競爭威脅還是真正的消費威脅？

And I think the caution that we throw out there for ourselves and what we feel is prudent for the market and what we’re communicating and what we’re prepared to do internally is the anticipation of a potential reduction in overall consumption at our customer level and what impacts that may have to orders. And as we mentioned, getting in the back half of the last couple of weeks of March is where we really started to see choppiness and inconsistent order patterns than what we’ve historically experienced. And a big part of that obviously was leading up to Liberation Day. And then we again started to see that through the quarter.

我認為，我們為自己提出的警告、我們認為對市場謹慎的做法、我們正在溝通的以及我們準備在內部採取的措施是預期客戶層面的總體消費可能會減少，以及這可能對訂單產生的影響。正如我們所提到的，進入三月最後幾週後半段，我們才真正開始看到與我們歷史上經歷過的相比波動性和不一致的訂單模式。顯然，其中很大一部分是為了迎接解放日。然後我們在本季度再次看到這種情況。

So we just felt that going into this April period, we wanted to make sure again that we were being prudent, transparent and really being prepared to pull the levers appropriate should this be a situation where it’s going be a longer term impact. But your assumption is right. We’ve conservatively forecasted flat quarter over first half over second half, which is extremely inconsistent. I think we were 6% up last year quarter to quarter. For Q2, we were sequentially 2% better roughly on volumes from Q1, which normally is a little bit is higher than that. So as we look at Q3, Q4, we’re short cycle business. So we’re looking at the next few months and we’re kind of factoring in what will that have an impact through the full quarter for full second half of the year.

因此，我們只是覺得，進入四月份，我們想再次確保我們是謹慎、透明的，並且真正準備好採取適當的措施，以防這種情況產生長期影響。但你的假設是正確的。我們保守預測上半年和下半年的業績將持平，但這極不一致。我認為去年我們的季度環比增長了 6%。對於第二季度，我們的銷量比第一季環比增長了大約 2%，通常會比第一季略高一些。因此，當我們看第三季和第四季時，我們是短週期業務。因此，我們正在展望未來幾個月，並考慮這將對整個季度乃至整個下半年產生什麼影響。

Okay.And then I guess the $10 million reduction in CapEx, Jim, the offset also, I guess, from lower earnings, working capital. Going down to maintenance levels, things that you would like to do or does this prohibit any sort of I know you guys are trying to balance getting after synergies faster, I guess maybe were any of those synergies capital contingent?

好的。吉姆，我想，資本支出減少 1000 萬美元，我想，這也可以抵消較低的收益和營運資本。降至維護水平，您想做的事情或者這是否禁止任何類型的我知道你們正在試圖平衡更快地實現協同效應，我想也許這些協同效應中的任何一個都是資本偶然的？

Gabe, thanks for the question. No, we don’t look, we just view it as we view that given the market uncertainty that it was appropriate to give sort of a conservative estimate based off as Kurt highlighted, flat sequential first half, second half to first half, right. So in that situation, given the uncertainty, we think it’s pretty important to focus on free cash flow and liquidity. We won’t sacrifice anything from a CapEx standpoint in terms of maintaining the equipment and from that nature.

加布，謝謝你的提問。不，我們不看，我們只是根據我們的觀點來看待它，考慮到市場的不確定性，根據庫爾特強調的，上半年與上半年持平，下半年與上半年持平，給出一種保守的估計是合適的。因此，在這種情況下，考慮到不確定性，我們認為關注自由現金流和流動性非常重要。從資本支出的角度來看，我們不會在維護設備等方面做出任何犧牲。

And then we’re not really moving off of any of the synergies that we previously highlighted. So guess the answer is no, we feel good about where we’re at. It was really just the growth CapEx that was layered into that number. If we see the levels, the conservative estimate levels that we have. We just don’t we think we can pull that lever to make sure that we had the cash flow guidance that we’ve provided previously.

我們實際上並沒有放棄我們之前強調的任何協同效應。所以我想答案是否定的，我們對目前的狀況感到滿意。實際上，該數字中只是分層的成長資本支出。如果我們看到這些水平，那就是我們所擁有的保守估計水平。我們只是不認為我們可以採取那種措施來確保我們獲得先前提供的現金流指導。

Gabe, going back to the growth CapEx, a couple of those programs that we peg every year tied to capital required for some growth programs with customers. So as we’ve seen a couple of those stall with the conversations that we’ve had and customers figuring out what they want to do next and where the direction of their business is headed.

加布，回到成長資本支出，我們每年都會將幾個項目與客戶的一些成長項目所需的資本掛鉤。因此，正如我們所看到的，其中一些問題在我們進行的對話中陷入停滯，客戶正在弄清楚他們下一步想做什麼以及他們的業務發展方向。

The one thing that I want to emphasize is we have not taken our foot off the pedal on innovation within the existing platforms that we do have, where it does not require CapEx. There is a innovation expense that comes along with that through material chemistry and working through that. Big part of our innovation bucket, is not only the new features and benefits that we can have on the products we serve, but the big efforts that we have on material qualifications to assist in our procurement efforts to make sure that we get again the best materials and the best cost possible.

我想強調的一點是，我們並沒有停止在現有平台上進行創新，因為這些平台不需要資本支出。透過材料化學及其加工，會產生創新費用。我們的創新重點不僅在於我們所提供的產品所具有的新功能和新優勢，還在於我們在材料資格方面所做的巨大努力，以協助我們的採購工作，確保我們再次獲得最好的材料和盡可能最好的成本。

Thank you. I’ll hand it over.

謝謝。我會把它交給你。

Thanks, Gabe.

謝謝，加布。

Kevin McCarthy, Vertical Research Partners.

凱文·麥卡錫（Kevin McCarthy），Vertical Research Partners。

Yes, thank you and good morning. With regard to your Rest of World segment, my impression is you inherited some challenging energy related headwinds associated with the legacy Glatfelter platform. Can you talk about the trajectory of those as you move into the back half of the year and what you might be able to do to mitigate those headwinds?

是的，謝謝你，早安。關於您的世界其他地區部門，我的印像是您繼承了與傳統 Glatfelter 平台相關的一些具有挑戰性的能源相關阻力。您能否談談下半年這些因素的發展軌跡以及您可以採取哪些措施來緩解這些不利因素？

And then, guess, sticking with ROW, can you elaborate on the softer volumes that you mentioned in personal care and food and beverage and whether that’s timing or more durable in nature? Thank you.

然後，繼續討論世界其他地區，您能否詳細說明您提到的個人護理和食品飲料領域的銷量疲軟情況，以及這是時間因素還是更持久的性質？謝謝。

So thank you for the question. So on the energy, yes, you did pick it up. So the primary decline was in the legacy acquisition business. It had energy was up roughly 50% versus prior year quarter. And we took pricing actions as well as some pass throughs mechanisms on energy that’s ultimately going to flip and we’ll recover that in the third quarter.

謝謝你的提問。所以就能量而言，是的，你確實吸收了它。因此，主要的下滑是發生在遺留收購業務。與去年同期相比，其能源消耗成長了約 50%。我們採取了定價措施以及一些能源轉嫁機制，這些機制最終將發生轉變，我們將在第三季恢復。

So I would kind of put that as timing. Again, was a known item and it was just timing of the period. Regarding the volume levels, it’s really the home food and beverage is where I would say it was a little bit weaker than it was in previous year. And it’s a little bit of a mixed bag in terms of what we’re seeing. So Kurt highlighted the consumption movements that we saw at the March as well as going into Q3, as well as the pricing actions that we’re taking on some of the legacy business to figure out places that we want to play and markets that we want to serve.

所以我會把它當作時機。再次強調，這是一個已知項目，只是時間問題。就銷售量而言，我認為家庭食品和飲料的銷售量確實比去年略弱一些。就我們所看到的情況而言，情況有點複雜。因此，庫爾特強調了我們在三月以及進入第三季時看到的消費動向，以及我們對一些傳統業務採取的定價行動，以找出我們想要進入的領域和我們想要服務的市場。

So was really kind of the combining factor. So again, it’s one of those where multiple factors are sort of driving the overall volumes right now. Overall, the division, was roughly flat year over year after you exclude the energy, which again is primarily a timing item.

所以這確實是一種結合因素。所以，再次強調，這是目前多種因素共同推動整體交易量的因素之一。總體而言，如果排除能源業務（這主要是時間因素），該部門的收入與去年同期相比基本持平。

Great. And then, can you provide an update on your synergy execution to date? What is in the rearview mirror accomplished at this point? And what sort of ramp trajectory are you targeting over the next few quarters?

偉大的。然後，您能否提供迄今為止協同效應執行的最新情況？此時後視鏡中完成了什麼？未來幾季，您的成長目標是什麼？

Sure, sure. The team, first off the team, the procurement team the overall teams, right, have done an awesome job. Right? So originally, our expectation was synergy realization during the year to offset standalone costs. And I would tell you that’s well on hand.

當然，當然。這個團隊，首先是採購團隊，整個團隊，都做得非常好。正確的？因此，我們最初的期望是年內實現協同效應以抵銷獨立成本。我會告訴你，這已經很充分了。

Like the team has done a great job from that standpoint in terms of the SG and A structuring and things of that nature. And then on the procurement front, the teams have done a really nice job in terms of those negotiations, is what I would say, from pricing actions as well as working capital. So in our free cash flow guide, one of the items that we’re not just bridging it with CapEx, we’re also bridging it with working capital. And we feel good about that based off the progress that the team has made to date, to be able to hold that. As we think about the 55, we’re not moving off of that number.

從這個角度來看，團隊在 SG 和 A 結構以及諸如此類的事情上做得非常出色。在採購方面，我想說，從定價行動到營運資金，團隊在談判方面做得非常出色。因此，在我們的自由現金流指南中，我們不僅將其與資本支出相銜接，還將其與營運資本相銜接。基於團隊迄今所取得的進展，我們對此感到很高興，能夠保持這種狀態。當我們考慮 55 時，我們不會放棄這個數字。

And we’ve always anticipated pulling the majority to the extent that we were able to pull the synergies forward, the 55 into the back half through the procurement. It was always going to be more back end loaded. So Q2 more wholesome in Q4. And the one pause that we have on in terms of timing realization of all the great work that the procurement team has done is just really the volume, right?

我們一直期望透過採購將大部分資金投入到能夠發揮綜效的領域，將 55 家公司納入後半部。它總是會載入更多的後端內容。因此，第二季度比第四季更健康。而我們在實現採購團隊所做的所有偉大工作的時間方面唯一的停頓實際上就是數量，對嗎？

So Curt highlighted the flow through of work. Glatfelter had a little bit higher working capital levels through the acquisition that we’ve been working on. But also, as we negotiate those savings, we got to get those through the pipe a little bit. So if you have 90, 120 days of inventory to the extent volumes are a little bit lighter, it takes a little bit longer, right? So that is somewhat predicated on the volumes in terms of what we see through the back half of the year. But we feel really good about the 55 and all the work and the progress that the teams have made.

因此 Curt 強調了工作流程。透過我們一直在進行的收購，Glatfelter 的營運資本水準略有提高。但是，當我們協商這些節省時，我們必須稍微通過管道來實現。因此，如果您的庫存為 90 到 120 天，而庫存量又稍微少一些，那麼需要的時間就會更長一些，對嗎？因此，這在某種程度上取決於我們所看到的下半年的交易量。但我們對於 55 以及團隊所做的所有工作和所取得的進展感到非常滿意。

Great. And the last one for me would be a rather general or broad question having to do with potential for a recession. It’s been a long time since we’ve seen a garden variety economic recession in the US, but as you look back at prior cycles, what sorts of changes would you expect to see with regard to demand or inventory effects? It strikes me that you have a very resilient portfolio overall. But are there pockets where you may be braced for impact if GDP were to go negative for a few quarters, for example?

偉大的。對我來說，最後一個問題是一個相當普遍或廣泛的問題，與經濟衰退的可能性有關。我們已經很久沒有看到美國常見的經濟衰退了，但當你回顧之前的周期時，你預計在需求或庫存效應方面會看到什麼樣的變化？我覺得您的投資組合整體上非常有彈性。但是，如果 GDP 連續幾季出現負成長，那麼你是否可以做好準備應對影響呢？

Yes, Kevin. Hey, good to be with you today and thanks for the questions. First of all, you’ve had a chance to be familiarize yourself a little bit with our portfolio. I think you can agree, we have we do have a resilient kind of product line and customer base as it relates to products that our everyday use. Obviously, there are certain parts of the portfolio that can be impacted a little bit more just in terms of consumer spending, whether that be in infrastructure, wallcovering, etcetera. So those are the types of things that I would say that in terms of the total portfolio are not as impactful.

是的，凱文。嘿，很高興今天和你在一起，謝謝你的提問。首先，您有機會稍微熟悉一下我們的產品組合。我想你會同意，我們確實擁有一種有彈性的產品線和客戶群，因為它與我們日常使用的產品有關。顯然，就消費者支出而言，投資組合中的某些部分可能會受到更大的影響，無論是基礎設施、牆紙等等。所以我想說，就整個投資組合而言，這些事情的影響並不大。

The big focus for us really is to continue to look at what happens with market dynamics. During times of recessions, historically, types of businesses and our business does very well. So you have two things that potentially be in your favor. First of all, if there’s deflation in your costs, you get the benefit of some of that lag.

我們真正關注的重點是繼續關注市場動態的變化。從歷史上看，在經濟衰退時期，各類企業和我們的業務都會表現得很好。因此，有兩件事可能對你有利。首先，如果您的成本出現通貨緊縮，您將獲得部分延遲的好處。

And then again, just having the right kind of footprint and product portfolio to stay close with our customers and ensure again that they’re winning on the shelf. But just going back to the fact that we don’t rely on one industry, one customer, one product line, one geography, we’re very diverse, very balanced and again, made up of products that are essential for everyday use.

再說一次，只要擁有正確的足跡和產品組合，就能與我們的客戶保持密切聯繫，並再次確保他們在貨架上獲勝。但回到事實，我們不依賴一個產業、一個客戶、一條產品線、一個地區，我們非常多樣化、非常平衡，而且由日常必需的產品組成。

Very helpful. Thank you.

非常有幫助。謝謝。

Edlain Rodriguez, Mizuho Securities.

瑞穗證券的埃德萊恩·羅德里格斯 (Edlain Rodriguez)。

Good morning. Thanks, guys. I mean, Kurt, just wanted to ask you a quick question on your new products. I mean, can you talk about the new products you have, like what’s coming, like the impact and the importance to the portfolio? And also, if we enter a downturn, like would you see do you anticipate the pace of innovation to slow down a little bit?

早安.謝謝大家。我的意思是，庫爾特，我只是想問你一個關於新產品的簡單問題。我的意思是，您能談談您擁有的新產品嗎，例如即將推出的產品，以及它們對產品組合的影響和重要性？而且，如果我們進入低迷時期，您是否預期創新的步伐會稍微放緩？

Adeline, thanks for the question. First of all, as I mentioned on the Type R product line, we have a number of different features and benefits that come out every day that the team works on. Some of them are tied directly to a particular customer. Some are more general in nature and have a global offering that the team works on to provide not only differentiation, but the protection of the enterprise. So if you think about our brand like Tiepar, it’s a very important business for us across the board.

阿德琳，謝謝你的提問。首先，正如我在 Type R 產品線上提到的那樣，我們擁有許多不同的功能和優勢，這些功能和優勢都是團隊每天都在努力研發出來的。其中一些與特定客戶直接相關。有些產品本質上較為通用，具有全球性，團隊致力於提供差異化，並提供企業保護。因此，如果您考慮我們的品牌，例如 Tiepar，那麼它對於我們整個行業來說都是一項非常重要的業務。

And having that continued innovation not only creates the total solutions and stickiness with our customers, we aren’t providing just one component, for instance, complementing our house wrap with other billing material products because staying ahead of the game to be able to enjoy the market growth and then gain new customers is extremely important to us. As it relates to the CAMI Soft, Ultra Soft product lines, there’s two ways that, that can benefit us. One, it’s to protect the existing business that we have.

持續的創新不僅能為我們的客戶提供全面的解決方案和黏性，我們不僅僅提供一個組件，例如，用其他計費材料產品來補充我們的房屋包裝，因為保持領先地位，能夠享受市場增長，然後獲得新客戶，對我們來說非常重要。就 CAMI Soft、Ultra Soft 產品線而言，有兩種方式可以讓我們受益。一是為了保護我們現有的業務。

So as customers make some of those choices to displace products that are less than with newer products and the focus on the premiumization of those product lines. That helps maintain our position with those customers but also gives us the opportunity to further differentiate and gain share in the more attractive areas of some of the non-commoditized parts of the portfolio.

因此，當客戶做出一些選擇，用新產品取代品質較差的產品，並將重點放在產品線的高端化上。這有助於我們保持與這些客戶的地位，同時也使我們有機會進一步實現差異化，並在產品組合中一些非商品化部分中更具吸引力的領域獲得份額。

Those two in particular, I think, really exciting. We can talk about some of the wipes innovation that we have offline from the institutional market. That’s a very large space. We have a good position in that market, but a ton of headroom for us to grow. We see wipes as across the enterprise as being a nice growth.

我認為，這兩個人尤其令人興奮。我們可以談談我們在機構市場線下進行的一些擦拭創新。那是一個非常大的空間。我們在該市場佔有良好的地位，但仍有很大的成長空間。我們看到整個企業的擦拭巾都呈現出良好的成長動能。

Historically, strong CAGRs in that space, but also now having the full portfolio of products, continue to innovate and find ways to again protect share, but also go out and gain new share. And then the other question that you have, you talked about innovation. From an innovation standpoint, look, we don’t take our foot off the pedal there. I think there’s two types of innovation that we look at. First of all, it’s cost innovation.

從歷史上看，該領域的複合年增長率強勁，而且現在擁有完整的產品組合，不斷創新並尋找再次保護份額的方法，同時也走出去並獲得新的份額。然後您的另一個問題是談到創新。從創新的角度來看，我們不會停止創新。我認為我們所關注的創新有兩種類型。首先，是成本創新。

And that’s been a big focus of a good part of that team over the past seven months, working with our procurement group, working with the sites, finding that time on the line to be able to qualify materials and then working with ultimately our suppliers and our customers to get those qualifications for the long term benefits. What comes along with is more competitive price offerings for us to be able to go out and get the right cost of goods sold.

在過去的七個月裡，這一直是團隊工作的重點，我們與採購團隊合作，與各個站點合作，尋找時間來認證材料，然後最終與我們的供應商和客戶合作，以獲得這些資格，從而獲得長期利益。隨之而來的是更具競爭力的價格，使我們能夠以正確的價格出售商品。

But more importantly, we try to find efficiencies on the line where if we’re running a material that runs a little bit better, provides a little bit more quality item for our customers. That’s a big part of that innovation side. And then we have, of course, the new product innovation, features and benefited innovation that we’ve been successful historically and will continue to be in collaborating with customers of they know their consumer better than we do.

但更重要的是，我們試著提高生產線的效率，如果我們運作的材料運作得更好一點，我們就能為客戶提供更優質的產品。這是創新的一個重要部分。當然，我們還有新產品創新、功能和有益創新，這些我們在歷史上一直很成功，並將繼續與客戶合作，因為他們比我們更了解他們的消費者。

So what is the feature and benefit that a consumer is looking for to then get that consumer to choose their product and rebuy that product over time. So as they’re fighting for share on the shelf, it’s how do they differentiate and get the value for the products that they’re putting in the market. And so we do not intend to slow down there at all. For us, it’s a big part of the future portfolio shift of the organization as we work through optimization programs on some parts of the portfolio that may not be generating the type of profit that we’re looking for through both price, productivity and cost.

那麼消費者所尋求的功能和好處是什麼，以便讓消費者選擇他們的產品並隨著時間的推移重新購買該產品。因此，當他們爭取貨架份額時，他們面臨的問題是，如何實現差異化，並讓他們投入市場上的產品獲得價值。因此我們根本不打算放慢腳步。對我們來說，這是組織未來投資組合轉變的重要組成部分，因為我們正在透過優化程序對投資組合的某些部分進行最佳化，而這些部分可能無法透過價格、生產力和成本產生我們所期望的利潤。

Okay, great. That’s all I have. Thank you.

好的，太好了。這就是我所擁有的一切。謝謝。

Thanks, Evelyn.

謝謝，伊芙琳。

Roger Spitz, Bank of America.

美國銀行的羅傑‧斯皮茨。

Hi, thank you and good morning. First on the volumes for the quarter, are you saying this was customer destocking or the consumer’s demand ultimate consumer demand is less? Or is it a mix of both, what are trying to say?

你好，謝謝你，早安。首先，關於本季的銷售量，您是說這是客戶去庫存還是消費者的最終消費需求減少？或者兩者兼而有之，你想表達什麼？

Well, yes. So the one thing, Roger, I think we got to be careful of is trying to pontificate what our customers are doing. Historically, you might see them pull back a little bit in terms of what their inventory positions are if they see a softer demand and a greater focus on their own working capital. So for us, it’s a we put in a level of conservatism of what we historically may have experienced for a short period of time. Again, you’re in a ninety day window where it’s a bit of a wait and see.

嗯，是的。因此，羅傑，我認為我們必須小心的一件事就是不要試圖對我們的客戶所做的事情妄加評論。從歷史上看，如果他們發現需求疲軟，並且更加關注自己的營運資金，你可能會看到他們在庫存狀況方面有所回落。因此，對我們來說，這是我們在短時間內經歷的某種程度的保守主義。再次，你需要等待九十天才能看到結果。

But again, we’re looking more from a just overall demand consumption standpoint. And so if our customers are anticipating a call down in terms of their sales, then we typically would see that a quarter or even two quarters ahead of what that impact might be realized. And we started to see, again, in the March, really some of those inconsistent order patterns leading up to Liberation Day and trying to understand what the landscape looks like for them. There’s quite a bit of activity going back and forth. For us, it’s finding appropriate ways to load our lines and take appropriate measures related to idling of capacity, which can have a short term impact on your overall fixed cost leverage inside of the facilities.

但同樣，我們更多的是從整體需求消費的角度來看這個問題。因此，如果我們的客戶預期銷售額會下降，那麼我們通常會提前一個季度甚至兩個季度預見到這種影響的實現。我們再次開始看到，在三月份，解放日之前確實存在一些不一致的訂單模式，並試圖了解他們的處境是什麼樣的。來回的活動相當多。對我們來說，就是找到適當的方法來裝載我們的生產線，並採取與閒置產能相關的適當措施，這可能會對設施內的整體固定成本槓桿產生短期影響。

If we don’t anticipate this being kind of a permanent move because quite frankly, it’s not a situation where we’re losing mass amounts of share. It’s a matter of what will the consumer do, what will our customers pull and do we have the right capacity, do we have the right demand for the not only ourselves, but for the market itself.

如果我們不認為這是一種永久性的舉措，因為坦白說，這並不是我們失去大量份額的情況。問題在於消費者會做什麼，我們的客戶會做什麼，我們是否擁有合適的產能，我們是否不僅對自己，而且對市場本身都有合適的需求。

Got it. Thank you. Then can you provide, now that you’ve owned Glatfelter for a bit, what your minimum excuse me, maintenance CapEx is and your minimum cash and or your minimum liquidity that you’d like to see?

知道了。謝謝。那麼，既然您已經擁有 Glatfelter 一段時間了，您能否提供一下您的最低維護資本支出是多少，以及您希望看到的最低現金和/或最低流動性是多少？

Yeah. Thanks, Roger. Yeah. So our maintenance CapEx is the number that we pulled it down to, call it the 75,000,000 And again, we have levers in our free cash flow that we can sort of hit that and Kurt highlighted in terms of what we’re doing there on the CapEx piece. And then in terms of the minimums, I don’t think that we’ve given that publicly.

是的。謝謝，羅傑。是的。因此，我們的維護資本支出就是我們將其下調至 75,000,000 這個數字。同樣，我們的自由現金流中有槓桿，我們可以達到這個目標，Kurt 強調了我們在資本支出方面所做的事情。至於最低標準，我認為我們還沒有公開給出。

What I would say is I feel good about where we are from a liquidity standpoint in terms of I think we ended the quarter at $5.70, 5 80 of liquidity, which was a nice bump from where we were last quarter. And we continue to given where we’re at with the market uncertainty, we’ll continue to preserve that liquidity and continue to focus on cash flows for the remainder of the year.

我想說的是，從流動性的角度來看，我對我們現在的狀況感到滿意，我認為本季末我們的流動性為 5.70 美元，5.80 美元，與上一季相比有了很大的提高。鑑於目前市場不確定性，我們將繼續保持流動性，並在今年剩餘時間內繼續關注現金流。

Got it. And just to sneak one in, the new EBITDA guidance, that does include, like it did last quarter, the 8,000,000 pro form a for the $8,000,000 for Glatzelter the pre acquisition.

知道了。再偷偷提一下，新的 EBITDA 指引確實包括了（就像上個季度一樣）Glatzelter 收購前的 8,000,000 美元預估金額。

Gabe Hajj, Wells Fargo.

富國銀行的 Gabe Hajj。

Thank you. One on utilization rates. I don’t suspect you want to comment necessarily on your regional utilization rates, but if you will, that’d be great. But just maybe more in the context of industry operates again to the extent that you’ve got visibility into those. And when competitive behavior tends to increase in a particular market, how long based on history does that take to manifest?

謝謝。一個是關於利用率。我並不懷疑您想對您所在地區的利用率發表評論，但如果您願意，那就太好了。但也許在行業運作的背景下，您可以更多地了解這些內容。當特定市場中的競爭行為趨於增加時，根據歷史來看，這種現象需要多久才能顯現出來？

And is that normally like a two quarter phenomenon or we got to wait for volumes to come back? I’m sure it’s a combination of a lot of things Just trying to understand the patterns. And if you can speak to it by geography, that would be helpful. Thank you.

這通常是兩個季度的現象嗎，還是我們必須等待交易量回升？我確信這是許多因素的組合，只是想了解其中的模式。如果您能從地理位置來談論這個問題，那將會很有幫助。謝謝。

Let me just do utilization rates just real quick. I mean, Gabe, we were down 1% versus prior utilization rates in the quarter were basically consistent with the March, right? So no material move there from what we previously reported.

讓我快速計算一下利用率。我的意思是，加布，與之前的季度相比，我們的利用率下降了 1%，與 3 月基本一致，對嗎？因此，與我們先前報導的相比，沒有實質的變動。

Yes. Look, for our business and for kind of the outlook and the customers, We take appropriate measures within the regions that in certain cases, you may have less demand. We’ve highlighted some of that. And during those times, look to idle capacity or again, for us, it’s a matter of do we make the decisions as we did in sites recently of permanently shuttering those overall kind of footprint capacity standpoint. So we have some parts of the business that are very robust and run well.

是的。你看，對於我們的業務、前景和客戶來說，我們會在特定地區採取適當的措施，在某些情況下，您的需求可能會減少。我們已經強調了其中的一些。在這些時候，看看閒置產能，或者對我們來說，這是一個我們是否做出決定的問題，就像我們最近在站點所做的那樣，從整體佔地面積容量的角度永久關閉這些決定。因此，我們的某些業務部分非常強勁且運作良好。

So those sites are, again, pumping out the type of cash and the profitability that you’d expect. So for us, as you can as we’ve kind of highlighted where we see, softer demand in certain areas, that’s where we’re having to take some appropriate measures. And as Jim talked about, as we look at inventory levels and working capital targets for ourselves, being mindful and disciplined from a cash standpoint, there are certain facilities within the enterprise that may have had what we would say is a little bit higher working capital, little bit higher inventory levels than historically what we would want to see for our business, what we want to see moving forward. So we’ve taken the appropriate actions to align that up with what our customer demand is. If you think about the transactional business as part of the portfolio versus the contractual business that we have that we set out and negotiate and get customer commitments for a year plus or minus 10% on a capacity demand ratio.

因此，這些網站再次產生了你所期望的現金和盈利能力。因此，對我們來說，正如您所強調的，某些地區的需求疲軟，我們必須採取一些適當的措施。正如吉姆所說的，當我們審視自己的庫存水準和營運資本目標時，從現金角度謹慎而有紀律，企業內某些設施的營運資本和庫存水準可能比歷史上我們希望看到的、我們希望看到的、以及我們希望看到的水準略高一些。因此，我們採取了適當的措施來滿足客戶的需求。如果您將交易業務視為投資組合的一部分，而不是我們制定和協商的合約業務，並獲得客戶對一年內產能需求比率上下浮動 10% 的承諾。

In times like this, again, we’re putting a conservative view on where we would normally see the lift in Q3, Q4. Only having six months left in this year, again, over time, it works its way out. But if our customers are pulling less than what they had targeted to pull from us versus the contract, they have the ability to go 10% below or 10% above at the prices that we’ve established. So it really is driven by the consumer kind of their own kind of consumer demand and their order patterns with us. Again, it’s uncharacteristic for us not to see a natural lift in Q3, Q4 versus the first half.

在這樣的時期，我們再次對第三季和第四季的正常成長持保守看法。今年只剩下六個月了，隨著時間的推移，一切都會好起來。但如果我們的客戶實際收到的貨量低於合約規定的目標量，他們可以按照我們設定的價格下調 10% 或上調 10%。因此，這實際上是由消費者本身的消費需求以及他們向我們訂購的訂單模式所驅動的。再次，與上半年相比，第三季和第四季沒有自然成長，這很不尋常。

But based on kind of what we’re hearing, what we’re seeing, and what we started to see at the March, that’s why we put that kind of conservative outlook on, flattish volume quarter or half over half.

但根據我們所聽到的、看到的以及我們在三月開始看到的情況，我們對本季度銷量持保守態度，認為本季銷量將持平或有一半以上。

Thank you.

謝謝。

Roger Spitz, Bank of America.

美國銀行的羅傑‧斯皮茨。

Yes, that’s me. Thank you for the follow-up. I know you run a lot of different products, etcetera, and I don’t know how you can think about it, but can you give us a general view of where your operating work rates are or were in fiscal Q2 and perhaps where they were in fiscal Q1 on a pro form a basis?

是的，那就是我。感謝您的跟進。我知道您經營著許多不同的產品等等，我不知道您是怎麼想的，但是您能否給我們一個總體的印象，即您的營業工作率在第二財季處於什麼水平，或者在第一財季處於什麼水平？

Yes. Just real quick, We were as Curt highlighted, volumes were up sequentially, which was typical, right? So typically Q2 is stronger than Q1. So we were up roughly 2% versus Q1 in terms of overall, so slightly higher is what I would say. So nothing abnormal, I think, through the first half versus what we’ve seen historically, Roger.

是的。就像 Curt 強調的那樣，交易量很快就會上升，這是很典型的，對吧？因此通常 Q2 比 Q1 更強。因此，就整體而言，我們比第一季增長了約 2%，所以我認為是略高。所以我認為，與我們過去所見的情況相比，上半場並沒有什麼異常，羅傑。

Got it. I mean, I know this is sort of asked before, but, you know, your volumes were up. I mean, was it was this all about, you know, Glatfelter European Energy was the the big thing that was going on in this quarter?

知道了。我的意思是，我知道這個問題以前就被問過，但是，你知道，你的音量確實提高了。我的意思是，這一切都是關於格拉特費爾特歐洲能源是本季發生的大事嗎？

Yeah. Me yeah, let me like big picture for the quarter, right? Because there’s been a lot of questions on the forward, which is sort of a different Curtis highlighted those, why we did what we did in terms of the guide. For the quarter, yeah, it was pretty simple. At the end of the day, the rest of world was down slightly versus prior year and primarily related to the energy sort of timing through the Gladfelt that we inherited through the Gladfelt transaction, which ultimately will be recovered in Q3, right?

是的。是的，讓我看一下本季的整體情況，對嗎？因為關於前言有很多疑問，這有點像柯蒂斯所強調的不同之處，為什麼我們在指南方面做了我們所做的事情。就本季而言，是的，這非常簡單。最終，世界其他地區的經濟與去年相比略有下降，這主要與我們透過 Gladfelt 交易繼承的 Gladfelt 能源時機有關，最終將在第三季度恢復，對嗎？

So headwind in Q2, or tailwind in Q3. So that one’s easy to understand. And then when you think about the Americas business, really there was a little bit of a mix in terms of the earnings, There was a mix price cost. When you think about the Latin America, the pressure that we have in South America related to the imports, with North America being a little bit stronger. So and obviously, that’s adjusted for FX and all those things. Sort of normalize that when I walks.

因此，第二季是逆風，第三季是順風。這樣就很容易理解了。然後，當您考慮美洲業務時，實際上在收益方面存在一些混合，價格成本也存在混合。當你想到拉丁美洲時，我們在南美洲面臨的壓力與進口有關，而北美的壓力則更大一些。所以，顯然，這是針對外匯和所有這些東西進行調整的。當我走路時，這種情況就會正常化。

Got it. Thank you for that. And my other is, are you still looking for working capital to be flattish for the fiscal year?

知道了。謝謝你。我的另一個問題是，您是否仍希望本財政年度的營運資金保持穩定？

No, no. So based off of where we’re walking and one of reasons we felt good about reiterating the free cash flow guide despite the EBITDA call down is one, the movement in the CapEx that Gabe asked about earlier, as well as benefits in working capital in the 10,000,000 to $15,000,000 range, that we see through the good work of the procurement teams, and operational folks.

不，不。因此，根據我們目前的情況，儘管 EBITDA 有所下調，但我們仍樂意重申自由現金流指南，原因之一是，Gabe 之前詢問的資本支出變動，以及 10,000,000 至 15,000,000 美元範圍內的營運資本收益，我們透過採購團隊和營運人員的出色工作看到了這一點。

Thank you very much.

非常感謝。

Thanks, Roger.

謝謝，羅傑。

And I’m showing no further questions at this time. I’d like to turn the call back to Kurt Begley for closing remarks.

我現在沒有其他問題了。我想請庫爾特·貝格利 (Kurt Begley) 作最後發言。

Thank you again for joining us today. We look forward to speaking to many of you

再次感謝您今天加入我們。我們期待與你們中的許多人交談

at the upcoming investor conferences or our next earnings call in August. Thanks for

在即將召開的投資者會議或八月的下一次收益電話會議上。感謝

your interest in Magnero, and have a great day.

您對 Magnero 感興趣，祝您有美好的一天。

And thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.

感謝您參加今天的會議。該計劃確實就此結束。您現在可以斷開連線。